Tax cut on low emission vehicles boosts sales in Japan
Wed 01 July 2009
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Japanese car manufacturers reported a sharp rise in sales in Japan during May this year following the Government decision to cut taxes on low emission cars.
The Financial Times reports that Nissan, Japan’s third-largest car producer, said orders at Nissan’s dealerships had risen 30 per cent compared with the same month in 2008. If the trend is confirmed nationwide, vehicle sales will have risen for the first time year-on-year since July 2008.
Honda, Japan’s second-largest carmaker, also reported a rise in orders of about 20 per cent to mid-May compared with a year earlier. Market leader, Toyota said it had seen a similar improvement.
The tax cuts have been credited with helping make Honda’s recently introduced Insight hybrid the top-selling full-size car in Japan in April; the first time a “green” model has been the best seller. Toyota says it hopes to repeat Honda's feat with the Prius; the FT reports that it had received 80,000 pre-sale orders for the new version 3, about twice the volume it had expected.
Some analysts said, however, that many consumers may have deferred new-car purchases until the tax cut came into effect, worsening the recent declines. Nevertheless, the May improvement suggested that a more fundamental upturn in demand may be beginning.
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